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Strategic Marketing

Indian Markets and


Marketing Practices
Section C | Group 2
Karan Dora B15147
Saurabh Pandey B15168
Sourav Jena B15175

TRENDS
SEGMENTATION
MARKETING
DISTRIBUTION

Trends
1991

2016

Lag in take-off time dependent on need,


availability, quality and service

Rising household income Key driver for


Indian market
Lag in take-off time reduces for products
like Mobile, Laptops, etc.

Low Time Lag Personal Products


High Time Lag High cost food products
& consumer durables

Lag in take-off time has remained higher


in costly products like refrigerators,
washing machines

Packaging has played an important role Smaller SKUs were found to be effective
in Indian Context

Availability is linked with Transportation


and Logistics Results in customer
willingness to buy

Time saving products Increased


demand in Cities

Ready to eat food has significantly


impacted the market and is growing
rapidly

Education and BFSI amongst fastest


growing segments

Largest categories of spending Foods,


beverages, healthcare, education,
recreational, etc.

Current Industry Trends & Indian Consumer


Unlike China, India has focused to become a Service led Economy
Services Sector is the major factor in GVA at 65% - IT is the major
growth driver with 30% contribution
Average Indian household income has tripled in the past decade
Lifting 291 million out of poverty Creating a strong middle class
India set to become 5th largest consumer market by 2025

*Source: The rising of Indias Consumer Market, McKinsey & Company, 2007

Segmentation: Household Income


Top 20% account for
45% of total national
disposable income while
the bottom 60% barely
account for a third
The top quintile is able
to save 47% of
household earning
The survey conducted
by Household Survey on
Indias Citizen
Environment &
Consumer Economy
covers 61000

Marketing
Advertising market in India Media ad spending [2016]

FMCG Rural vs Urban Penetration [2016]

TV access across platforms [2016]


Three different modes of access :
Non-Cable and Satellite (NCS) - Ordinary antenna - 2
channels - DD1 and DD News
Cable and Satellite - Analog ( C&S)
Digital

Rural(millionhouseholds) Urban(millionhouseholds)
NCS

C&S

92

69

Digital

42

42

Current Distribution Systems


Manufacturing
Unit

ITC

HUL
(rural strategy)

C&F Agent

Warehouse
R.S. Area- HUL
Distributors

Wholesale
Distributors

Wholesalers

Retailers

Shakti Amma Distributors

Consumers
Convenience stores,
Pan stores, Kiosks etc

Child Retailers (Near


Shakti Amma Stores)

Distribution
Increasing focus on rural penetration over 10 years by companies like
HUL with their innovative initiative of Shakti Ammas
Increased used of technology like hand held devices, geo tagging, heat
maps aim to improve and optimize the overall distribution system
There has been a rise in organized retail stores:
1) Supermarkets 4000 2) Hypermarket 300 3) Speciality stores
3000
4) Cash and carry 30
This has led to a form of distribution system where companies directly
cater to the needs of these modern retail stores
Share of FMCG sales done through grocers has decreased from 50% in
early 90s to around 35%. ( Source: Accenture report)

Thank You !